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) What would be the profits, if the local selling price falls to OMR 11 from OMR 13, after acceptance of the order from a local merchant?

) What would be the profits, if the local selling price falls to OMR 11 from OMR 13, after acceptance of the order from a local merchant?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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1) What would be the profits, if the local selling price falls to OMR 11 from OMR 13, after acceptance of the order from a local merchant?

The Cost Sheet of a product is given as under: OMR Direct Materials 6.00 Direct Wages 3.00 Factory Overheads: Fixed 0.50 Variable 0.50 Administrative Expenses: 0.75 Selling and Distribution Overhead Fixed 0.25 Variable 0.50 Total 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit.
Transcribed Image Text:The Cost Sheet of a product is given as under: OMR Direct Materials 6.00 Direct Wages 3.00 Factory Overheads: Fixed 0.50 Variable 0.50 Administrative Expenses: 0.75 Selling and Distribution Overhead Fixed 0.25 Variable 0.50 Total 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit.
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